Electric Cars Signal Auto Industry Spiral

author: FutureCar Staff    

With the increase in new electric vehicle (EV) inventories on dealer lots, the auto industry is facing several challenges. These challenges include concerns about driving range, vehicle reliability, price, the availability of electricity for charging infrastructure, charging time, battery cost and lifespan, environmental impact, carbon emissions reduction, lithium battery fires, battery recycling, and end-of-life management. Additionally, there are concerns about the future costs for EV owners, such as the potential implementation of the Vehicle Mileage Tax and separate meters for home chargers.

Another problem for the automobile industry is convincing buyers that it is ethical and socially responsible to purchase an EV. Many of the exotic minerals and metals required to build EV batteries are mined in developing countries with limited environmental and labor regulations. The lack of transparency in the green movement's impact on these countries is discussed in the book "Clean Energy Exploitations" and illustrated in the documentary film "Planet of the Humans."

As government mandates push automobile manufacturers to reduce emissions, most manufacturers are shifting toward manufacturing only EVs in the coming years. This shift may result in fewer hybrid vehicles, as manufacturers need to eliminate gasoline engines to meet emission targets. However, despite loading up dealer lots with EVs, manufacturers are not seeing sufficient demand from the public. The current profile of EV owners consists of highly educated, highly compensated, multi-car families with low mileage requirements for their second car. This profile differs significantly from the majority of potential car buyers who are not as highly educated or compensated.

Historically, the majority of car sales in America are used combustion engine cars, with a lack of a resale market for EVs. Additionally, the distribution of EV ownership throughout the nation is a concern, as California accounts for 40% of EVs in America, leaving only approximately 1% per state for the other 49 states. Furthermore, the lack of EV charging infrastructure in most states, compared to California's robust infrastructure, poses challenges.

In the UK, the distribution of electricity for EV charging is more advanced than in most other countries. Smart chargers and separate meters are being implemented to protect the grid and ensure users pay for the electricity used for charging. New regulations require home-installed EV chargers to be separately metered and connected to the Smart meter data communications network. This legislation allows for potential higher taxation on EV charging electricity and enables the rationing of electricity for EV charging.

With the continued rise in EV inventories on dealer lots, there are obstacles to widespread adoption of EVs among the general population. The auto industry must address these challenges to successfully integrate EVs into the lifestyles of common individuals.

Ronald Stein is an engineer, senior policy advisor on energy literacy for CFACT, and co-author of the book "Clean Energy Exploitations."

FutureCar Staff